help please

elljay20

Hi guys,
was wondering how sellers make money by selling items at 99p? surely the insertion fees and final value fees and paypal fees mean they've sold it for nothing?
I was wanting to get rid of some junk at a quid a time to help pay off my credit card but i can't see i'd be left with much!

Contains_Mild_Peril

I use a non-fee-paying Personal Paypal account, because you have a point, ebay and Paypal fees combined often leave you with only pennies from sales of 99p items. Paypal fees at 20p + 4% of the whole payment (inc p&p) can work out an absurd proportion of the sale price of low value items.
The disadvantage of sticking to a Personal account is you're not allowed to tick the "I accept Paypal" option when you make your listing unless you're willing to accept any Paypal payment, which would mean you would have to chenge to a fee-paying account if someone tried to pay using a card. If you don't tick the Paypal box when listing, but send invoices with Paypal info and a note saying you can't accept card-funded Paypal payments, you'll still get the odd customer trying to pay with a card anyway (well, that's what happens to me, though most transactions are fine).
Some sellers overcharge on p&p for 99p items, but this is often frowned on.

elljay20

all gobbeldygook to me i'm afraid!! i'm not really getting what you mean? How do i get a non fee paying personal account?

frivolous_fay

The other option (assuming you're considering selling low value items) is a paypal micropayments account.

Here's some info from a paypal rep:

Merchants who wish to use PayPal's micropayments pricing will need to open a new PayPal account. This isn't strictly true, it's possible, although difficult, to convert an existing account. I did it.

Merchants who receive both "macro" and "micro" payments should maintain two separate accounts:

Standard rate applies to "macro" payments (1.4% + 0.20 GBP to 3.4% + 0.20 GBP per transaction).

Micropayments rate applies to "micro" payments (5% + 0.05 GBP for UK to UK payments).

If your Premier/Business account rate for receiving funds is 3.4% + 0.20 GBP, using PayPal's 5% + 0.05 GBP micropayments rate would reduce the total transaction fee charged to payments received below the value of 12 GBP (per payment). However, if you accept payments that are greater than 12 GBP, you would pay a lower processing charge by accepting the payment into the account set with the 3.4% + 0.20 GBP rate.

elljay20

so if i did the micro payment thing and sold something for £1.50 how much would i end up with??? sorry i'm a bit confused at the moment

frivolous_fay

£1.50 payment to a micro account would mean:

5% of £1.50 = 8p
+ 5p flat fee

13p in paypal charges

In a standard (low usage) premier account that would have been:

3.4% of £1.50 = 6p
+ 20p flat fee

26p in paypal charges

Micropayments stops being a good deal when you get to payments of about £11.

elljay20

thanks will check out paypal now

bap98189

If they are selling a lot, they may be paying lower Paypal fees. There are different brackets for Paypal charges depending on how much you sell per year.

Also shops get better rates on the Ebay fees. And then presumably they hope some items will be bid up beyond the 99p.

lovetoshop_2

IN my humble opinion it is not owrth the hassle for 99P

lovetoshop_2

sorry would help if I spelt it right in the first place doh !

Benji

This site will work out all the fees you will have to pay when selling on eBay.

http://ecal.!!!!!!/en/home.php